Which of the following terms is used to describe a situation in which the government finances public goods that are underproduced because non-payers cannot be excluded from enjoying the goods? a.) Externality failure b.) Asymmetric failure c.) Government failure d.) Market failure

i)A public good a )costs essentially nothing to produce and is thus provided by the government at a zero price. b)can never be provided by a nongovernmental organization. c) can't be provided to one person without making it available to others as well. d)generally results in substantial negative externalities. ii)The market demand curve for a public good a) shows the total value that all individuals place on each additional unit of the good. b) is derived in the same manner as demand curves for private goods. c)is derived by horizontally summing all individual demand curves. d)shows the total number of units that would be produced by the public sector at each possible price. iii)The market demand curve for a public good a) shows the total value that all individuals place on each additional unit of the good. b)is derived in the same manner as demand curves for private goods. c) is derived by horizontally summing all individual demand curves. d)shows the total number of units…

(a) Explain the difference between a positive externality and a negative externality and why each result in an equilibrium point that is not optimal for society. (b) which externality results in an equilibrium quantity that is higher than the optimal social quantity of a good? (c) how can the impact of the externality in part b be corrected?

61) The Coase Theorem points out that externality problems can be eliminated if the number of parties involved is small and if property rights A) are granted solely to consumers. B) are granted solely to producers. C) are eliminated. D) are granted to either consumers or producers and transactions costs are low. 62) The Coase Theorem says that which of the following is necessary to lead to an efficient use of resources? A) presence of transaction costs B) existence of property rights C) government intervention D) All of the above answers are correct. 63) According to the Coase theorem, which of the following are necessary for the efficient levels of pollution to be achieved? I.Property rights are defined. II.Transactions costs are low. A) I only B) II only C) both I and II D) neither I nor II 64) Which condition(s) must exist for the Coase Theorem to hold? I.Property rights must exist. II.Transactions costs must be measurable. III.A small…

Consider an economy which is heavily dependent on  tourism.  To boost tourist revenue, the government  has decided to reclaim the sea to build a theme park  at the coastal area.  This has resulted in sea  pollution, reduces the fish stock and threaten the  livelihoods of fishermen in the vicinity. (a)Describe the type of externality exist in the  scenario. Explain with a suitable diagram and  highlight the area of the efficiency loss. (b)Explain the remedial action to rectify the  externality problem.

According to the Coase theorem   Group of answer choices a. the private market will usually solve externality problems, except when side payments are necessary b. under certain conditions, the private market will solve externality problems efficiently c. an externality is a form of market failure d. government intervention is necessary in order to solve an externality problem

The terms spillover or externality refer to__A) black-market economic activity.B) the impact on markets of imported goods.c) the cost or benefit of a market activity borne by a third party.D) the inequitable distribution of income.

From economic perspective, when is government intervention in the market justified?a) when there is an externality or there is an absence of clearly defined property rights (e.g. an absence of rules governing fishing on the high seas)b) when companies pursue profit maximization as their solve objective c) when consumers pursue only their own interests in reaching purchase decisionsd) all the abovee) none of the above

Public goods are normally produced by the government because:Response option group (a) The private production of a public good is not in the interest of the government (b) It is impossible for the private company to charge a reasonable fee to all those who enjoy the benefits of the public good, so it is not profitable to produce such good (c) The private company does not have the necessary technology to produce public goods (d) The public demands that only the government provide public goods (e) None of the above

Explain the concepts given below by exemplifying them.a) Public Choice?b) Economic Efficiency?c) Pareto Optimality?d) Market Failure ?e) Government Failure?